1 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Corporate
Overview
> May 2015
2 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
3 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Who We Are and What We Do
A world-leading supplier of deposition and etch systems, Veeco designs,
builds and sells thin film capital equipment to global manufacturers that
make high-technology electronic devices.
4 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Thin Film Technology: At the Core of Everything We Do
LED
Wireless
Power Electronics
Hard Drives
5 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Industry Leader in Thin Film Equipment
> Highly differentiated process equipment and
technologies that enable the manufacturing of
high-tech electronic devices
> Industry leader in MOCVD, MBE, IBD, IBE,
Single-Wafer Wet Etch and other advanced thin
film process technologies
> Operations in 10 countries on four continents
> Based in New York, with about 800 employees worldwide
TurboDisc® EPIK™700 GaN
MOCVD System
NEXUS® IBE-420Si™ Ion Beam
Etching System
WaferStorm® 3300 Single Wafer
Wet Etch Processing System
6 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Veeco Businesses and Markets
Molecular Beam
Epitaxy
(MBE)
Metal Organic Chemical
Vapor Deposition
(MOCVD)
Advanced Deposition
and Etch
(AD&E)
LED Lighting Power Electronics Solar
Wireless
Data Storage Optical MEMS
LED Backlighting
Solar
Atomic Layer
Deposition
(ALD)
Flexible OLED Displays
MEMS Advanced Packaging
Precision Surface
Processing
(PSP)
Semiconductor
7 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Transformation from Industry Player to Industry Leader
Ed Braun, former Chairman & CEO leads management buy-out to create a new
equipment company for the semiconductor & data storage industries. Company
completes a dozen technology acquisitions during this time
John Peeler new CEO – accelerates product development, creates flexible operations
strategy and high growth markets
Veeco launces multiple industry-changing system innovations including GEN10™ and
GEN2000™ MBE systems and TurboDisc® K465i™ MOCVD System
Veeco sells metrology business to focus exclusively on Process Equipment
Veeco introduces NEXUS® DLC-X™ and Optium® ADS-800™ for data storage and and
TurboDisc MaxBright™ Multi-Reactor MOCVD system
Veeco becomes the #1 provider of MOCVD systems, critical to making LEDs
Veeco acquires Synos Technology and enters flexible OLED equipment market;
launches GENxplor™ R&D MBE System, industry’s first fully integrated MBE system
Veeco launches TurboDisc EPIK700 GaN MOCVD System to accelerate adoption of
solid-state lighting
Veeco launches Propel™ PowerGaN™ GaN MOCVD system to enable transition from
R&D to production of highly-effiicient GaN power electronic devices
Veeco purchases Solid State Equipment LLC to extend footprint into high growth
markets; renames business unit Veeco Precision Surface Processing
1990
2007
2010
2008 -
2010
2013
2012
2011
2014
8 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Competitive Advantages
Industry leader with exceptional technology,
differentiated equipment and low cost of ownership
Decades of expertise in growing, depositing and etching
advanced thin film technologies with over 300 patents
Global presence, world-class sales channel and local
process engineering to reach and support customers
worldwide
Outsourced and internal manufacturing capability for
maximum production flexibility
9 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Where We Are
Fremont, CA Plainview, NY St. Paul, MN
Somerset, NJ
Poughkeepsie, NY
Mannheim, Germany
Shanghai, China
Hsinchu City, Taiwan
Penang, Malaysia
Seoul and Suji-gu, Korea
Singapore
Philippines Bangkok, Thailand
Tokyo, Japan Horsham, PA
10 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Leading Technology Companies Choose Us
Data Storage, Optical
and MEMS
MBE for Research and
Industry
Lighting and Display
11 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Veeco provides process equipment
solutions that drive tomorrow’s
technology breakthroughs today
We are a dynamic, innovative and
high-growth company recognized as
the best in the markets we serve
Vision
We help customers make
products for a more productive
world and a cleaner and
sustainable environment
12 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
2014: Solid Execution in a Transition Year
EPIK700™ MOCVD Gained Traction in Multiple Regions
Data Storage Secured Sizeable Q4 Orders
Propel™ MOCVD Launched New Opportunity in GaN Power
GENxplor® MBE Gained Research Market Share
New Product and Business Wins
PSP Acquisition New Trajectory for Revenue & Profit Growth
13 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
MOCVD, MBE &
ALD Technology
14 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
$0
$5
$10
$15
$20
$25
$30
$35
2009 2010 2011 2012 2013E 2014E 2015E 2016E
CCFL
Fluorescent
Incandescent
LED
LED Lighting Adoption to Accelerate in 2014 and 2015
Source **: McKinsey Lighting Report 2012
69%
2020
• Incandescent
phase-outs
• Utilities broaden
subsidies
• LED bulb prices come
down
Average Selling Price for Different Lamps
45%
2016
LED Value-Based Percent
of Lighting Market**
Source *: iHS, Barclays Research estimates
9%
2012
15 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
LED - New, Greener Paradigm for Lighting
By 2025, LED lighting adoption …
will eliminate 258 million
metric tons of carbon emissions
By 2025, LED lighting adoption …
will save over $280B and enable
us to avoid building 133 new
power plants
LED TV
16 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
MOCVD Industry Leader
24 % 29 %
44 %
62% 51%
2008 2009 2010 2011 2012
Competitive Advantage: Lowest CoO and Superior Customer Connectivity
Note: Estimated comparative market share Veeco and Aixtron only
K465i and MaxBright are
#1 Selling MOCVD Systems with
the Industry’s Highest Productivity
Veeco
Market Share
2013 2014
63%
2007
17 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
EPIK700 MOCVD: Pulling Ahead of the Competition
> Highest productivity platform with up
to 20% improved CoO compared to
previous generations
> Designed for best-in-class uniformity
which provides greater wafer yield
> Fastest to production with easy
process transfer
> Most efficient capital investment
for maximum profitability
> All betas accepted; quick
process transfer of recipes –
in discussions for multi-unit
orders with multiple customers
Strategic Wins in 4 Key Geographic Regions
18 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Power Electronics: New Growth Opportunity for MOCVD
Notes: 1) Yole Nov 2011, 2) IMS Research Feb 2012
Ga
N P
ow
er
De
vic
e M
ark
et2
($M
)
Power Electronics device market continues to grow
GaN-based power devices offer higher efficiency,
switching speed and lower power consumption
Veeco MOCVD is positioned at key customer sites
around the globe to support this high growth segment
1
2011 2012 2013 2015 2018 2021
19 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
> Outstanding film uniformity, yield
and device performance
> Long campaign runs for process
development flexibility and best-in-
class low particle defects
> Modular design for ease of
configuration, operation and
maintenance…and best cost
of ownership
> Fast cycles of learning
Single Wafer 200MM System to Accelerate Industry Transition from
R&D to High Volume Manufacturing
Propel: Cost Effective, High Yield GaN Power Devices
20 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
GaN Power Represents New MOCVD Growth Vector
More than 30 Industry Leaders Investing in GaN Power R&D
GaN Power Electronics Potential Customer Landscape
21 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
GENxplor MBE Driving Increased R&D Market Share
System Generating
Worldwide Interest for
Cutting Edge Research
Customer engagements span multiple research fields including:
IR detectors, laser diodes, novel HEMTs, graphene, solar, high- temp
superconductors, UV LEDs, and thermo electrics
22 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Veeco ALD: 10x Faster Than Traditional ALD and Scaled With Virtually No Limits
A new generation of ALD:
Fast deposition
Low temperature
Large area format
Focus R&D efforts on semiconductor and other applications, and
continue to monitor the flexible OLED market opportunity.
23 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Data Storage &
Other Thin Film
Technologies
24 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Hard Disk Drives Will Continue to Dominate Storage
2012
3,500
2020
It took Seagate 29
years to reach their
first billion hard
drives… and only
four years to reach
their second billion
Source: Western Digital
Exabyte
Ship
ments
Over 85% of exabytes in
2020 will be stored on HDDs
2016
Client PC
Personal Consumer Electronics
Cloud
Smart Phones/ Tablets
Cloud SSD
Client SSD
25 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Data Storage Business: More than Just HHDs
End Market Blended
CAGR ~10%
High Performance Optical Coatings
MEMS & Magnetic Sensors
*Seagate
End Market
CAGR ~ 5%
PVD CVD DLC IBD IBE Lap
&
Dice
From 1960- 2010 approximately 1
billion terabytes of data was stored.
In 2012, 1 billion terabytes
were stored.*
EUV Masks
26 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Global Trends Driving Veeco’s MEMS Opportunity
> We are the largest
supplier of thin film
magnetics process
equipment
> Over 800 etch and
deposition systems
installed worldwide
> Strong technical team
and dedicated
applications lab
Source: Semico Research Corp. Dec 2012
$B
illi
on
s o
f d
oll
ars
$20
2005 2015
MEMS Revenue by Application
Automotive
Smartphones
Displays
$0
27 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Veeco IBD Required for EUV Mask Roadmap
Currently engaged with key industry
players on next-gen equipment solutions
> $300B semiconductor market
investing heavily in EUV to solve
lithography challenges
> Defect-free photomasks are a
technical roadblock
> We have 100% market share in
Ion Beam Deposition for this
application
28 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
“Soak and Spray” Technology
enables Single Wafer Control with
Low Cost of Batch Processing
Highly Configurable Platform
Serves Multiple Applications and
Wafer Sizes
Strong Position in Advanced
Packaging
Extends Footprint in Compound
Semi & MEMS
Significant
Overlap in Business
Opportunities
Working to Accelerate Growth
for a Robust, Highly
Profitable Business
Increased Access
to High
Growth Markets
Complimentary
Differentiated
Technology
Synergistic Combination
to Drive Growth
& Profitability
1 3
PSP: Great Fit to Support our Growth in 2015 & Beyond
2
29 | April Corporate Overview | Copyright © 2015 Veeco Instruments Inc.
Veeco Summary
Market Leaders
We are a leader in each of our core technologies – MOCVD, MBE, ALD, IBE/IBD, Wet Etch
and Other Advanced Thin Film Process Technologies
Exceptional Technology
Our people, technology and process knowledge enables us to deliver systems with the
lowest CoO to the world’s leading companies
Tied to High Growth Markets
LEDs for lighting, power electronics for energy conversion, hard drives, wireless chips and
MEMS for cloud computing and state-of-the-art electronics
High-Performance Organization
Fast and agile culture featuring speed as a competitive differentiator, customers count on our
flexibility and value proposition